FranchiseDiff Blog
FDD explainers, a glossary of franchise terms, and aggregate data reports across the FranchiseDiff dataset. Every claim is sourced. We don't rank or recommend brands.
FDD Education
View all →What Is Item 1 in an FDD? The Franchisor and Its Parents and Affiliates
Item 1 introduces the legal entity selling the franchise and the corporate family behind it. A factual guide to what it discloses and what it doesn't.
May 3, 2026 · 6 min read
What Is Item 10 in an FDD? Franchisor-Offered and Franchisor-Arranged Financing
Item 10 discloses any financing the franchisor or its affiliates offer or arrange. A factual guide to terms, rights, and what 'we offer no financing' means.
May 3, 2026 · 7 min read
What Is Item 11 in an FDD? Assistance, Advertising, Computer Systems, and Training
Item 11 is the longest item in most FDDs. A factual guide to what the franchisor is and isn't obligated to do for you before and after opening.
May 3, 2026 · 7 min read
What Is Item 12 in an FDD? Territory, Exclusivity, and E-Commerce Carve-Outs
Item 12 defines where you can operate and where the franchisor still can. A factual guide to exclusivity, reserved rights, and alternative channels.
May 3, 2026 · 6 min read
What Is Item 13 in an FDD? Trademarks, Registration Tier, and Defense Obligations
Item 13 discloses the brand assets you license. A factual guide to registration status, defense obligations, and modification rights in the FDD.
May 3, 2026 · 7 min read
Data Reports
View all →Process & How-To
View all →Glossary
View all →Ad Fund Contribution
A recurring fee franchisees pay into a brand-wide marketing pool, separate from the royalty and from any local advertising obligation.
Initial Franchise Fee
A one-time payment to the franchisor for the right to operate a single franchised unit — usually due before the unit opens, and typically non-refundable.
Royalty Fee
An ongoing percentage fee a franchisee pays the franchisor on gross sales — the core economic engine of most franchise systems.